Student Tax in the UK

Farore · 22 Jul 2009 at 19:42

Guys, wondering what the rules are on being a student taxation in the UK?

My employers have taxed me something like 22% because the fools lost my P46 form. :mad:

I want to know how much a student can earn before we are taxed?

Regards,

Farore

matthewhotdude · 22 Jul 2009 at 19:44

£6.475

kenshinu · 22 Jul 2009 at 19:45

You don't pay tax but you do pay NI. Not sure how much though.

OzyOly · 22 Jul 2009 at 19:48

matthewhotdude said:
£6.475

Same as everyone else. You don't get tax exception apart from council tax.

Haircut · 22 Jul 2009 at 19:48

kenshinu said:
You don't pay tax but you do pay NI. Not sure how much though.

If you earn over the tax free limit you will pay tax, regardless of whether or not you're a student.
As already pointed out you get £6,475 tax free though.

ikillbears · 22 Jul 2009 at 19:55

OzyOly said:
Same as everyone else. You don't get tax exception apart from council tax.

Murf · 22 Jul 2009 at 20:55

Amazing how 'intelligent' people who go to Uni don't even have a basic grasp of how our tax system works.

me227 · 22 Jul 2009 at 20:58

Murf said:
Amazing how 'intelligent' people who go to Uni don't even have a basic grasp of how our tax system works.

That combined with so much bad information that so many people believe as fact.

Jez · 22 Jul 2009 at 20:59

Why does everybody in the UK seem to think that being a student has an affect on income tax? Its such a stupid concept that it could even begin to approach being true.

GeX · 22 Jul 2009 at 21:01

because everyone knows that students are tax dodging bums!

OzyOly · 22 Jul 2009 at 21:10

GeX said:
because everyone knows that students are tax dodging bums!

But at least they can't be benefit thieves seeing as they're not entitled to state benefits.

Johnny Girth · 22 Jul 2009 at 21:33

kenshinu said:
You don't pay tax but you do pay NI. Not sure how much though.

There's always one!

Although in reality because students don't tend to earn over the annual personal allowance but they do earn over the weekly NI threshold this is pretty much the practical outcome - even if it's technically not correct.

big_white_dog84 · 22 Jul 2009 at 22:24

kenshinu said:
You don't pay tax but you do pay NI. Not sure how much though.

OMFG. Can this please be turned into a sticky to stop the bi-monthly student tax questions?

Vonhelmet · 22 Jul 2009 at 22:26

Johnny Girth said:
There's always one!

Just the one? It seems there's bloody millions.

lolism · 22 Jul 2009 at 22:32

Jez said:
Why does everybody in the UK seem to think that being a student has an affect on income tax? Its such a stupid concept that it could even begin to approach being true.

I'd imagine word of mouth. We get quite a lot of calls saying things like "my friend told me this" or "my sisters brothers GF said she doesn't get taxed" etc etc..

If your soley working during a holiday period and don't think you'll be earning over £6475 ask your employer for a P38s, otherwise don't bother or you'll be taxed harshly once you go over that amount.

Jez · 22 Jul 2009 at 22:34

lolism said:
I'd imagine word of mouth. We get quite a lot of calls saying things like "my friend told me this" or "my sisters brothers GF said she doesn't get taxed" etc etc..

If your soley working during a holiday period and don't think you'll be earning over £6475 ask your employer for a P38s, otherwise don't bother or you'll be taxed harshly once you go over that amount.

Do these numskulls not consider that if it were true, that perhaps there would be rather a lot of middle aged company director "students" around?

Its so stupid, why do they think tax havens exist? If you could just be a student here to avoid all income taxation they wouldn't

Gackt · 22 Jul 2009 at 22:36

Murf said:
Amazing how 'intelligent' people who go to Uni don't even have a basic grasp of how our tax system works.

Because many weren't taught very much about it during school due to our wonderful curriculum.

Jez · 22 Jul 2009 at 22:37

Gackt said:
Because many weren't taught very much about it during school due to our wonderful curriculum.

That is no excuse for believing something that simply requires the slightest inkling of common sense to work out that it cannot possibly be workable

semi-pro waster · 22 Jul 2009 at 22:55

Jez said:
That is no excuse for believing something that simply requires the slightest inkling of common sense to work out that it cannot possibly be workable

I think the problem is that people look at correlation here rather than examining the situation properly i.e. lots of students earn below the tax threshold ergo all students pay no tax. For the majority of the time it is correct to assume students pay no tax but it's rather obviously just because they are typically low earners than any exemption because as you say it would otherwise be rather attractive to declare oneself a student.

Farore: if you earn below the threshold amount in the year then you will be credited back the tax you've already paid leading to that feeling of intaxication (origin unknown).